Taiwan’s Dollar Declines to Five-Year Low as Overnight Rate Cut

Taiwan’s dollar fell to a five-year low as the central bank eased monetary policy to spur economic growth and China slashed the yuan’s fixing by the most on record.

The island’s sovereign bonds surged after the monetary authority cut the interest rate on overnight certificates of deposit on Tuesday to 0.386 percent from 0.388 percent at the previous sale, the first reduction in three years, according to people familiar with the matter. It came after second-quarter growth slowed to the least since 2012 and as China weakened the yuan’s reference rate by 1.9 percent on Tuesday.